Tax question...JohnH? - Posted by Carlene (Maine)

Posted by cheryl on November 20, 2000 at 10:31:15:

I agree, I have been a Tax Preparer for three
years. They will catch you in the long run,so
just pay the small amount of tax.
Better safe than sorry!!!
Look at what it is going to cost you if you
don’t pay and get caught.
Time (very valuable) and money ( that you could
use for a purchase).

Tax question…JohnH? - Posted by Carlene (Maine)

Posted by Carlene (Maine) on November 12, 2000 at 16:33:44:

I have a quick tax question. (Maybe for you John Hyra.) My CPA is in Florida until the end of the month and I’m just curious to know the answer.
Do you all report the $100 “Finder’s Fee’s” on your taxes as expenses or is it something you just ‘give’ without reporting. Maybe too technical but it came up in a business meeting with my partner and our husbands.

I actually have my Nurse Practioner handing out my business cards, being a finder for me for buyers…this business is just too fun!

Thanks for any help,

Technical Answer… - Posted by JHyre in Ohio

Posted by JHyre in Ohio on November 12, 2000 at 18:08:17:

The $100 fee is deductible to you. Once a person gets $600 from you in one year, you are supposed to 1099 them…they’ll pay taxes, including full self-employment taxes, on any such amounts.

John Hyre

illegal? - Posted by Bob-MD

Posted by Bob-MD on November 14, 2000 at 19:45:11:

Aren’t these finder’s fees illegal? If so, I don’t think I would be reporting them. I believe they are for licensed RE agents but are there technical ways around this?


Re: Al Capone - Posted by David Krulac

Posted by David Krulac on November 16, 2000 at 18:15:49:

in most states finder’s fees are illegal, but are still reportable to IRS for Federal income tax purposes.
It’s illegal NOT to report illegally gotten income to the IRS. Evasion is how they nailed Capone among others.